Home Craft Business - Licenses and Permits
Before you actually start a home based craft business, you should know what legal responsibilities you have. Most state and local governments require some kind of license to operate a business.
Some agencies may have a very fast turn around time for issuing permits and licenses, but others may take several weeks. It is important, therefore, to research this aspect of your home craft business as soon as possible, so that you have everything in place before you are actually ready to start selling your crafts.
I want to stress that the information here is not legal advice and is only intended as a guide to help you find the resources needed to start your home craft business. Any advice contained herein should not supersede your own common sense. Remember it is your responsibility to know and understand any laws pertaining to your business before you open it.
Local Business License
Odds are you will need a business license at the very least. These can be obtained through your local city hall if you are in an incorporated city. If not, check with your county government offices.
The fees associated with a small home craft business license are typically low. Many however will require you to run a fictitious name statement in your local newspaper, prior to issuing your license.
State Business License
State business licenses are required for certain types of businesses, such as doctors, hair dressers, auto mechanics, contractors, etc. This type of license is typically for professions that require certain types of training and is not likely to apply to home based craft businesses.
State Tax License or Sellers Permits
Nearly all states require some kind of reseller permit or tax license. This permit allows you to purchase wholesale supplies and sell your crafts. In most states the State Franchise Tax Board is the governing body for this type of permit.
Builders Permit
If you plan to build a commercial storefront or remodel one, you will need a builders permit. Check with your local planning department to see what local building codes are and what sorts of ordinances you may need to conform to.
Zoning Permit
Before signing any lease, be sure to check the zoning guidelines with your local planning department. You may need to purchase a zoning permit.
Health Permit
If your craft business involves food in any way you should check to see if a health permit is require from your local health department. Different states, and even different counties within each state will have differing requirements.
In some states, California for example, you need a health permit even if the food products are completely packaged at all times. A gift basket business is a good example of the type of home based craft business that may need a health permit.
Home Occupation Permit
Some local governments will require you to have a home occupation permit if your business is home based. Also, be sure to check with your home owners association or rental manager to be certain there are no rules against running a business from your home.
Some helpful websites where you may find legal advice for your craft business…
Business.gov - Official Business Link to the U.S. Government
